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Zultys Remnants Sold To Highest Bidder |
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Written by Adam Gosling
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Wednesday, 01 November 2006 |
One of three companies bidding to pick up the remains of
failed VOIP hardware company, Zultys Technologies, has agreed to pay US$2.65
million plus some debts to secure control of the existing product line.
Pivot VoIP, a newly minted company backed by Israeli-based Telrad
(Telrad Connegy in the US) was
successful in its bid, TMC
reports.
In that report, former Vice President of Technology for
Zultys, Vladimir Movshovich, who now works for Pivot related how the bidding
process concluded.
Pivot, the successful bidder is a team of only six
employees, formed by a core set of former Zultys engineers was the ‘last man
standing' when rival bidder InPath was unable to best its bid which included
the payment of ‘priority' claims such as some back wages and taxes. The Pivot
deal also agrees to pay the members of the creditors committee a percentage of
profits for several years.
Pivot VoIP plans to take the Zultys business and product
line forward, although a change in management is inevitable.
"It was a heavy battle between Pivot and InPath," Vladimir
Movshovich explained to TMC. "Both sides put everything on the table."
Though founder and president, Iain Milne had hoped to retain
control of the company he was well out of the bidding, unable to meet the
bidding threshold in the new round of bidding .
Also, reports Movshovich, rival bidder InPath ran out of
money and was unable to contract its venture capital backers to commit more
funds. With no guarantee they could go higher, presiding Judge Arthur S.
Weissbrodt, allowed an end to the auction process before subsequently granting
the motion at around 10 pm US Pacific Time last night.
Although Pivot is believed to be offering jobs to the three
tech support reps at Zultys the new owner reportedly has no interest in
securing members of the Zutlys management team as witnessed by an email
distributed by former President Milne and posted on on Greg
Galitizine's VoIP Authority Blog.
Founded exactly five years ago the Zultys Technologies flame
burned brightly but briefly with its failure precipitated by a unsuccessful
attempt to secure further funding earlier this year.
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